The purpose of this study was to acquire meaningful insights on the determinants of creativity with a meticulous examination, and by dint of that, expand the concerned literature. To accomplish the same, a conceptual model that includes authentic leadership, employee creativity, and leader–member exchange (LMX) was methodically developed and evaluated. This research is a quantitative study incorporating a self-report survey. The data were amassed from hotel employees in Northern Cyprus. Data from 314 applicable surveys were analyzed using Statistical Package for the Social Sciences (SPSS)-22 and analysis of a moment structures (AMOS)-18 programs. Based on the findings, it can be deduced that authentic leadership has a considerable impact on employee creativity, while LMX plays an intermediary role in this relationship. The results of this study are useful and relevant for both researchers and policymakers.